Help understanding how much money I can borrow for a BRRRR

[Ryan Farran]

Lets say I find a home listed for $100k, it needs $20k of rehab, but the ARV will be $150k when I'm done. When trying to get a loan, can I get a loan for the $120k so that I have the money to do the rehab.....or would most get a loan for the $100k and out of pocket pay the $20k for the rehab?

[Justin R.]

What your asking about is called a bridge loan. These loans can be had from a small local bank, credit union, private money, or hard money lenders.

Like @Aaron Cullen mentioned, the will underwrite the deal with a fine tooth comb and want to see you have equity (whether buying right, or down payment) and an ARV high enough to refinance out after construction (if using hard money/private money.)